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Dec flows to monitor - Westpac

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - Analysts at Westpac got together and drew up and lost of key points for the key flow indicators for Australia and New Zealand.

    Key Quotes:

    "Japanese demand for A$ assets held up well in October as AUD/JPY stabilised around 85. We think it will have slowed as the currency more recently lifted towards 90.

    Japanese demand remains very focussed on non sovereign debt.

    November saw a resurgence in buying of A$ fixed income, registering the largest buy-side net delta since February/March this year.

    Demand for A$ equity was not as strong as we expected according to the Q3 BOP data. We suspect this may be revised higher in coming quarters. The list of pending M&A and future deals suggests strong demand will continue into 2016.

    Speculative short A$ positions was cut back late last month as the AUD proved resilient. Our own flows highlight a fierce uplift in real money interest.

    Japanese demand for NZ$ debt has settled back in recent months, however US investors have swung from net sellers to net buyers of NZ$ bonds.

    November was a weak month for NZ$ EMTN issuance. However, our own NZGB investor clients have shown signs of more resilient demand.

    Leveraged traders rebuilt short NZD short positions in November."
    For more information, read our latest forex news.
     

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